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Tag: pension

  • Mandatory biometric verification restored for pensioners

    Mandatory biometric verification restored for pensioners

    ISLAMABAD: The government has made mandatory the biometric verification for pensioners to make withdrawal of their pension amount from banking system.

    In an office memo, the Finance Division said that the mandatory requirement of biometric verification has been restored for the pensioners, which was suspended due to COVID-19.

    READ MORE: Grant of 10% increase in pension notified

    The finance division on January 28, 2021 has made it mandatory for direct credit system (DCS) pensioners to undergo biometric verification on National Database and Registration Authority (NADRA) system through any branch of a bank every year in the months of March and October. However, the same was held in abeyance through office memo dated May 6, 2021 due to COVID-19.

    Since the normal working has been restored, therefore, it has been decided to operationalize the biometric verification for federal government pensioners with immediate effect who were issued pension from AGPR Islamabad (for military pensioner, and those who were issued pension from AGPR sub-offices and District Account Offices will be communicated separately), according to the finance division.

    READ MORE: Pensioners living abroad require presenting life certificate

    Pensioners to undergo biometric verification twice a year; rules amended
  • PM adviser stresses need to rationalize salaries

    PM adviser stresses need to rationalize salaries

    ISLAMABAD: Shaukat Tarin, Adviser to the Prime Minister on Finance and Revenue, on Tuesday stressed the need to rationalize salaries, allowances, and perks.

    Tarin was addressing a virtual meeting of the Pay and Pension Commission.

    The Commission is headed by Zafar Ahmed Khan and is composed of senior professionals from public and private sectors as well as serving Federal and Provincial Secretaries, AJK and GB and other senior officers of the governments also attended the meeting.

    Speaking on the occasion, the Adviser underscored that current model for pay and pension is not sustainable and there is a need to rationalize the salaries, allowances, perks etc. on the basis of performance and quality work.

    The performance of the employees may be assessed on the basis of setting targets and KPIs and simultaneously best performers may be compensated with rewards.

    The Adviser stressed for removal of anomalies in basic pay structure and suggested a uniform basic pay structure for all the organizations. He suggested for the adoption of internationally accepted practices in the matter of pensions.

    Tarin emphasized that there is a need to work out ranges for linking compensation with performance. This will ensure meritocracy in the recruitment and result in improved service delivery in the public sector.

    The Adviser further extended his full support and cooperation to the Commission.

    Chairman, Pay and Pension Commission thanked Adviser to the PM on Finance and Revenue for his keen interest and ownership of the work of the Pay and Pension Commission. He assured that the Commission will do its best to come up to the expectations of the Government and would present an actionable set of recommendations to the Government for rationalizing the pays of the public servants.

    Withholding tax rates on salary income for 2021-2022
  • Grant of 10% increase in pension notified

    Grant of 10% increase in pension notified

    ISLAMABAD: The federal government on Thursday notified the grant of 10 per cent increase in pension of all government pensioners with effect from July 01, 2021.

    The finance ministry said that the President has sanctioned an increase at 10 per cent of net pension with effect from July 01, 2021 until further orders to all Civil pensioners of the Federal Government including Civilians paid from Defence Estimates as well as retired Armed Forces personnel and Civil Armed Forces Personnel.

    The ministry said that the previous increase in pension would be admissible to the new pensioners who would retire on or after July 01, 2021.

    The latest 10 per cent increase in pension as will also be admissible to the pensioners who would retire on or after July 01, 2021.

    For the purpose of admissibility of increase in pension sanctioned in this O.M. the term “Net Pension” means “Pension being drawn” minus “Medical Allowance”.

    The increase will also be admissible on family pension granted under the Pension-cum-Gratuity Scheme, 1954, Liberalized Pension Rules, 1977, on pension sanctioned under the Central Civil Services (Extra Ordinary Pension) Rules as well as on the Compassionate Allowance under CSR-353.

    lf the gross pension sanctioned by the Federal Government is shared with any Government in Accordance with the rules laid down in part-iv of Appendix-lll to the Accounts Code, Volume-I, the amount of the increase in pension will be apportioned between the Federal Government and the other Government concerned on proportionate basis.

    The increase in pension sanctioned in this O.M. will not be admissible on Special Additional Pension allowed in lieu of pre-retirement Orderly Allowance and monetized value of a driver or an orderly.

    The benefit of increase in pension sanctioned in this O.M. will also be admissible to those Civil Pensioners of the Federal Government who are residing abroad (other than those residing in India and Bangladesh) who retired on or after 15.08.1947 and are not entitled to, or are not in receipt of pension increase under the British Government’s Pension (increase) Acts. The payment will be made at the applicable rate of exchange.

  • FBR directs timely disposal of pension, retirement cases

    FBR directs timely disposal of pension, retirement cases

    ISLAMABAD: The Federal Board of Revenue (FBR) on Friday directed the field formation to ensure timely disposal of pension and retirement cases otherwise the officers concerned will be responsible for any lapse.

    An official notification issued by the FBR stated that it is observed with serious concern that field formations while forwarding / submitting retirement cases / pension papers for the approval / signatures of competent Authority don’t follow the procedures of the Government and FBR’s instructions issued on the subject from time to time.

    In some cases pension papers of officers / officials are received after their date of retirement. This at times causes embarrassment to the department.

    The Pension Rules for Civil Servants stipulate the procedure and stages for disposal of pension cases (refer to S.No. 53 & 54 “A manual of pension procedures”).

    As per the aforesaid rules, action on the pension papers of a civil servant should be initiated one year before a Government servant is due to retire, so that pension may be sanctioned a month before the date of his retirement.

    Similarly, the Establishment Division’s Instructions, (conveyed to all ministries / departments, vide letter No. 330/RP/2016- WO(P) dated 12.05.2017) also emphasise that “the retirement Notifications / office orders of the retiring officers/officials shall be issued at least one year before retirement on  attaining the age of superannuation”.

    All Additional Commissioners / Deputy Commissioners, Additional Directors / Deputy Directors (HQ) are personally liable for timely submission of pension cases as per procedure / instructions issued by the Government.

    In view of the above, the officers have been directed to ensure that cases of all officers / officials under your control retiring by 30.06.2022 are processed by 15.07.2021 positively. ADCIR / DC (HQs) shall personally be held responsible for any lapse in this regard.

  • Budget 2021/2022: salary and pension increased by 10 percent

    Budget 2021/2022: salary and pension increased by 10 percent

    ISLAMABAD: The federal government on Friday presented budget 2021/2022 and announce an increase of 10 percent in basic salary and pension of the government employees.

    While delivering the budget speech for the year 2021-22, Minister for Finance Shaukat Tarin announced that the increase in salaries and pensions of the federal government employees would be applicable from July 01, 2021.

  • Pensioners living abroad require presenting life certificate

    Pensioners living abroad require presenting life certificate

    ISLAMABAD: The finance division has made it mandatory for pensioners living abroad to submit life certificate in place of biometric verification.

    The ministry of finance on Tuesday issued a notification stating that through a SRO issued January 28, 2021 it was made mandatory for pensioners to ensure verification of biometric in order to receive pension.

    The ministry however stated that the pensioners receiving pension abroad through Pakistan Mission Office, Ministry of Foreign Affairs (MOFA) / Chief Accounts Officer, MOFA will continue to provide proof of life through a medical certificate or by way of Life Certificate signed by a Gazetted Officer of Pakistan Mission in that area/country.

    The Pakistan Mission, shall forward the life certificate or medical certificate through chief accountants office, MOFA to Accounts Office concerned for information and record purposes.

  • Procedure issued for intimating retirement, submission of pension papers

    Procedure issued for intimating retirement, submission of pension papers

    ISLAMABAD: Federal Board of Revenue (FBR) has issued procedure for officers and staff of tax machinery regarding intimation about their superannuation retirement and submission of pension papers.

    In supersession to Board’s earlier SOPs No. 25(20)MIR-IV/2016 dated 10.12.2020, the FBR said that while submitting the cases of retirement, pension papers and encashment of LPR for officers of field formations, the following documents must be attached with the application:-

    I. RETIREMENT NOTIFICATION:

    i. Application of the officer along with attested copies of CNIC and payslip

    ii. Service Book & Matriculation Certificate (in original)

    iii. Prescribed certificate regarding disciplinary and criminal proceedings (in original) format enclosed.

    iv. Even if an officer does not submit application to the head of field formation for issuance of his/her retirement notification, it shall be incumbent upon the respective head to submit documents to the Board for issuance of retirement notification at least 3 months prior to his/her superannuation.

    II. PREMATURE/ VOLUNTARY RETIREMENT:

    The option for pre-mature/voluntary retirement after rendering 25 years of qualifying service shall be submitted along with all requisite documents mentioned above at least 06 months before the date of voluntary retirement with specific recommendations of the concerned Head of the field formation.

    III. PENSION CASES:

    i. Each page of pension papers must be signed and stamped (by name) by the DDO/Account Officer concerned and countersigned by the respective Head of office i.e. Chief Commissioner/ Chief Collector/ Director General/ Commissioner/ Collector/ Director.

    ii. Pension application along with three attested Photographs.

    iii. LPC (in original) issued by concerned AGPR/sub-offices of AGPR or District Accounts Officer (as the case may be).

    iv. CNIC of the pensioner.

    v. Prescribed certificate regarding disciplinary and criminal proceedings (format enclosed).

    vi. No column of the pension papers should be left blank. Even if it is NIL, the same may be incorporated. Any irrelevant or inapplicable columns should be struck down.

    (vii) While forwarding the pension papers, the respective Chief Commissioner/ Chief Collector/ Director General/ Commissioner/ Collector/ Director shall invariably submit recommendations about the release of full pension on the basis of satisfactory service of the pensioner or to withhold any portion of pension recording reasons thereof with evidences, in the relevant column, for decision by the Sanctioning Authority.

    IV. LEAVE ENCASHMENT/LPR:

    i. Leave admissibility certificate duly signed and stamped by the concerned officer of AGPR/ Sub-Offices of AGPR/District Account Officer

    ii. In case of leave encashment, a certificate stating that the officer has not availed any kind of leave (except casual leave) during the last year of his/her service. In case leave is availed during last year, the details of leave availed, its nature and period with dates are to be specifically mentioned.

    iii. Attested copy of retirement notification issued by the Board.

    The FBR said that in case an application is not received with complete documentation, it will be returned with a copy of SOP indicating missing documents.

  • Joint bank account of pensioners prohibited

    Joint bank account of pensioners prohibited

    KARACHI: The finance division has barred opening of joint account for disbursement of pension amount.

    The State Bank of Pakistan (SBP) on Monday circulated instructions issued by the Finance Division regarding the payment of pension through bank accounts.

    The central bank pointed out BC&CPD Circular Letter No. 01 dated January 18, 2016, regarding Standard Operating Procedures (SOPs) for DCS issued by Finance Division, Government of Pakistan vide letter No. 12(9)-Reg. 6/2012.pt1453 dated January 05, 2016.

    In order to bring transparency and ease in the pension payment process, the government through letter No. 12(9)-Reg. 6/2012 dated January 06, 2021, has made the following amendments into the SOPs for DCS with immediate effect:-

    Pensioner shall be required to undergo biometric verification from any branch of a bank maintaining his/ her pension account, every year in March and September. If the pensioner is unable to undergo biometric verification due to incapacitation by bodily illness, infirmity, or if his/ her fingerprints do not exist due to old age or a genetic condition, he/she will provide a life certificate as per the SOPs.

    In case of family pension, Non-Marriage declaration as required under para 4 and 9(xiii) of SOPs shall be obtained from pensioners on or before 30th September of each year instead of March and September.

    Submission of above mentioned Non-Marriage declaration will be dispensed with after the widow/ daughter/ sister of the pensioner (family pension recipient) attains the age of sixty years.

    If a pensioner fails to submit a life certificate or fails to undergo biometric verification during March and September or a pensioner does not draw a pension for consecutive six months, the account shall become dormant.

    The requirement of submission of indemnity bond by a pensioner, as laid down in para 3(f) and 9(xii) of the SOPs is discontinued.

    In continuation to the above instructions, the following clarifications have also been issued by Finance Division:

    The Pension shall be paid through a bank account either current or PLS maintained in the pensioner’s name.

    A pension account shall not be a joint account.

    A bank account dedicated to pension transactions only shall not be mandatory for the pension.

    All banks are advised to disseminate the instructions widely to branches and ensure compliance in letter and spirit. Any violation of the instructions would be dealt with under the relevant provisions of the Banking Companies Ordinance, 1962.

  • Pensioners to undergo biometric verification twice a year; rules amended

    Pensioners to undergo biometric verification twice a year; rules amended

    ISLAMABAD: Pensioners are required to undergo biometric verification twice in a year in order to continue withdrawal of pension amount.

    The Finance Division on Friday issued SRO dated January 28, 2021 to notify amendments in the Federal Treasury Rules.

    As per the amendments, a pensioner drawing pension shall be bound to undergo biometric verification on National Database and Registration Authority (NADRA) system from any branch of a bank maintaining his pension account, every year in the months of March and October or provide a life certificate signed by a person authorized, if he is unable to undergo biometric verification due to incapacitation by bodily illness, infirmity or if his fingerprints do not exist due to old age or a genetic condition.

    Authorities shall obtain declaration yearly from pensioners whose pension is terminable by their marriage or re-marriage and shall be attached to the bills for pension paid for September, however, this requirement shall be dispensed with after attaining by the pensioner the age of sixty years.

    The disbursing officer must take special precautions to prevent imposition and must, at least once a year, receive proof of life or proof of continued existence of the pensioner, through NADRA’s biometric verification at any branch of a bank maintaining his pension account, which shall be conclusive proof of the continued existence of the pensioner.

    “Any pensioner who is incapacitated by bodily illness or infirmity from so going to any branch of a bank for biometric verification or whose finger prints no longer exist due to old age or infirmity or a genetic condition, that pensioner shall give written request for exemption and for that pensioner, the disbursing officer shall allow proof of life through life certificate as conclusive proof of his continued existence.”

    The disbursing officer shall be responsible for any payment wrongly made and in all cases of doubt, he must consult the Accountant General.

    “If a pensioner drawing pension fails to submit a life certificate or fails to undergo NADRA’s biometric verification during the months of March and October or he does not draw his pension for consecutive six months, his account shall become dormant.”

  • Process initiated to assess, evaluate retirement benefit scheme

    Process initiated to assess, evaluate retirement benefit scheme

    ISLAMABAD, July 12, 2024 – In a significant move aimed at managing fiscal responsibilities, the federal government of Pakistan has launched an initiative to evaluate and assess liabilities pertaining to its retirement benefit schemes.

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